The Call - On January 14, 2013 we generated a Sell call on the pound-yen (GBP-JPY) pair at 143.80 levels (spot) for a target of 137.
Original Call - The GBP-USD sold at 1.6110. The JPY-USD bought at 89.26; Hence, the GBP-JPY cross sold at 143.80 for a target of Rs137. (Fundamental report based call - Sell GBPJPY at 143.80. Target Rs137. Sell GBPINR spot at Rs8,774 [Feb. at Rs8,819], Buy 15 lots of JPY-INR spot at Rs6,102 [February at Rs6,143]).
Today we booked profit of Rs10,500 in the said call at 141.71 (spot) levels. We decided to book profit prematurely as G-20's failure in singling out Japan on currency intervention issue will lead to more aggressive intervention from Bank of Japan and Japanese government in order to weaken yen. Our decision to book profit sounds judicious given that we are long on Yen in two other calls (JPY-INR long for target of 62.70, USD-JPY Short for target of 87).
